In real wealth terms, Africa today is growing at a faster rate than at any time in recent history.

The new King Shaka International Airport has transformed Durban’s Northern Urban Development Corridor (NUDC) into one of Africa’s fastest growing metropolises, and a significant concentration of wealth on the continent.

Adapted from an article by Business Tech

Wealth concentrations on the African continent

New World Wealth and AfrAsia Bank have published the latest African Wealth Report, showing the levels of wealth of various African nations at the end of 2018. According to the report, South Africa is still the richest country in Africa, with the high net worth (HNWI) population of 39,200 people holding the most wealth at $649 billion. This is double that of the second wealthiest African nation, Egypt, where the HNWI population of 16,700 people holds $303 billion. Egypt is followed by Nigeria ($225 billion), Morocco ($114 billion) and Kenya ($93 billion). Total wealth held on the continent amounts to US$2.2 trillion. Around US$920 billion (42%) of this is held by HNWIs, New World Wealth said. While South Africa ranks at the top of the list, on a per capita basis ($11,450), it is only the second wealthiest nation – following behind Mauritius, where wealth per capita sits at $31,000.

Africa’s Wealthiest Cities

South African cities ranks as the top richest cities on the continent, with Johannesburg and Cape Town holding the most HNWI wealth among the major cities covered, taking the first and second spots, respectively. Total wealth held in Johannesburg amounts to US$248 billion, while total wealth held by Cape Town amounting to US$133 billion. Most of Johannesburg’s wealth is concentrated in Sandton, New World Wealth said, which is home to the JSE (the largest stock market in Africa) and to the head offices of most of Africa’s largest banks and corporates. Cape Town, meanwhile, is home to Africa’s most exclusive and expensive suburbs such as Clifton, Bishops Court, Camps Bay and Bantry Bay. It is also a hotspot for wealthy second home owners from around the world. Major sectors there include: real estate, financial services (fund management), retail and tourism.

Also in the top five from South Africa is Durban and Umhlanga (combined), which holds total HNWI wealth of US$54 billion. This figure includes wealth held in Durban, Umhlanga, La Lucia and Ballito.

Notably, Umhlanga and Ballito are two of the fastest growing areas in SA, in terms of wealth growth over the past 10 years, the group said. Among other African countries, Cairo (Egypt), Lagos (Nigeria) and Nairobi (Kenya) stand out as wealthy cities, sitting on par with South Africa’s popular HNWI areas. Total wealth held in Cairo amounts to US$129 billion – and the city is home to more billionaires than any other African city (four billionaires live there, compared to just two in Johannesburg). In Lagos, total wealth held in the city amounts to US$96 billion. This is the largest city in Africa, in terms of population and GDP (but not in terms of wealth).

Ballito – Capital of KZN’s North Coast

North Point Ballito is situated in the heart of the Northern Urban Development Corridor, one of Africa’s fastest growing commercial and residential centres. Ballito’s proximity to KIng Shaka International Airport, a key driver of the new economic growth, has positioned the town as the unofficial capital of the North Coast.

Designed for doing business tomorrow

North Point Ballito is one of the few commercial sites situated within Ballito’s town limits, providing investors in the estate with a captive audience of affluent residents and tourists. With flexible zoning and a master planned approach to the design of the space, North Point Ballito offers a secure, easily accessible and architecturally consistent business environment, with serviced platforms to suit businesses of almost any size and concept.

JLL, one of the world’s leading real estate investment and advisory firms, today released its Q1 South Africa Real Estate Market Performance report which outlines the implications that Covid-19 will have on major sectors across the country.

According to the report, most real estate sectors across the market have softened with the exception of the industrial sector, which has recorded a strong performance in Q1 2020.

Industrial property continues to look positive

Adapted from an article by eProperty News

As travel restrictions, the closing of non-essential businesses, and mass cancellations of events has significantly slowed economic activity in South Africa, traditional retail, heavy industry and the hospitality sector have been hit the hardest. The International Monetary Fund (IMF) anticipates the effects of Covid-19 will force the global economy to contract by 3% in 2020, whilst emerging markets are expected to contract by 1%.

Emerging economies are anticipated to bounce back stronger than leading economies, with GDP predicted to grow between 4% and 6% in 2021. Although Covid-19 will have significant impacts on the global economy over the short to medium term, long-term structural shifts may be less severe.

“Whilst some of the more resilient leading economies have been able to stabilize amidst the global pandemic, many emerging markets have been adversely impacted by compromised global supply chains and South Africa is no exception,” said Michael Scott, Research Analyst, JLL, Sub-Saharan. “With slowed economic growth and rising debt obligations, South Africa’s debt to Gross Domestic Product (GDP) ratio is expected to reach 70% by the end of the year, so the implications on local businesses is significant. Many are going to be forced to scale down and reduce spending.”

Good news for industrial property

The Industrial sector space remains strong, with year-on-year capital growth backed by low vacancy rates (3.4% national average). There is now a growing demand for warehouse and distribution space due to the significant growth in online retail sales from a relatively low base. E-commerce is expected to strengthen as consumer preference and behaviors change, with increased market penetration as a result of more accessible and affordable technologies.

Ballito – Capital of KZN’s North Coast

North Point Ballito is situated in the heart of the Northern Urban Development Corridor, one of Africa’s fastest growing commercial and residential centres and a significant concentration of wealth on the continent. Ballito’s proximity to King Shaka International Airport, a key driver of the new economic growth, has positioned the town as the unofficial capital of the North Coast.

Designed for doing business tomorrow

North Point Ballito is one of the few commercial sites situated within Ballito’s town limits, providing investors in the estate with a captive audience of affluent residents and tourists. With flexible zoning and a master planned approach to the design of the space, North Point Ballito offers a secure, easily accessible and architecturally consistent business environment, with serviced platforms to suit businesses of almost any size and concept.

Local or global, North Point Ballito is positioned for success

Located between the R102 and N2 at the Shaka’s Head interchange, North Point Ballito offers immediate access to major roadways that offer access to Durban Harbour, Richards Bay and the KZN interior. With a large pool of skilled talent within the immediate surrounding areas and three global gateways into Africa only minutes in every direction, the estate offers astute businesses in the technology, trade and logistics industries a tactical position that will be a key competitive advantage in future.

Original Article by RoseLawGroupReporter

With shifting behaviour comes a host of new opportunities.

The coronavirus outbreak will accelerate commercial real estate trends that had been forming and cause dramatic changes in the industry faster than had been anticipated. The crisis will result in some short-term contractions in the industry, but will lead to a long-term expansion for commercial real estate generally, particularly in the industrial and warehouse sector.

During a special webinar last week Dr. Timothy Savage of New York University, and a research economist for NAIOP, updated his outlook on demand for industrial, office and retail commercial real estate in light the coronavirus.

“CRE was faced with technological disruption before this crisis,” Savage said. “This crisis is more of a natural disaster than a financial crisis; the significance of which is that on the other side of it, the fundamentals will be the same, they have just been moved further along the continuum.” These trends, Savage said, affect all sectors:

Positive outlook for the industrial sector

Prior to the crisis, the NAIOP Research Foundation had revised its projections for industrial demand upward in a report entitled, The NAIOP Industrial Space Demand Forecast. It had forecast decreased demand into mid-2021 due to a lagging supply of available space and economic uncertainty but a fairly quick rebound to robust levels similar to those seen in early 2019.Those levels may now be reached sooner, as people have come to rely on delivery-based goods for more everyday living items.“These wide-ranging economic factors all support increased demand for industrial real estate. The long-term economic effects of the

coronavirus are of course unknown, but we see a strong underpinning of the global economy, including low interest rates, the ever-increasing amount of online commerce and a demand for faster delivery of goods,” said Thomas J. Bisacquino, President and CEO of NAIOP.“Industrial real estate is at the epicenter of automation and e-commerce distribution and stands to benefit from this transformation we are going through,” Savage said.

Office spaces to shift focus

The office sector will be driven more quickly by changing work patterns that will favor decentralized work, co-working and short term leases, even in Class A spaces.

Recovery for the hospitality industry

While hospitality has been significantly negatively impacted, early signs are that it will bounce back quickly.

Despite the recent upheavals, the need for tactical positioning in industry will expand in the era to come.

Focus on being closer to where people live

The current shifts in behaviour caused by coronavirus mean people are less willing to commute to work or travel to shop, meet or interact. Positioning will become increasingly critical to retaining client loyalty and ensuring continued custom from your client base. Businesses located in remote areas will need to transform their business models to incorporate eCommerce and other distance revenue streams, as they are likely to struggle to draw people from urban areas as they did previously.

Market disruption leads to people relocating

With the pressures of COVID-19 on the market, people will be downsizing, moving to new cities and towns for employment. With the movement comes opportunities for relocation services, self storage and

a host of other business concepts aimed at making people’s journeys simpler and more manageable.

Remote working

Possibly the greatest transformation between people and work since the previous industrial evolution is currently underway. Microsoft estimates that five years worth of automation progress has occurred in the first quarter of 2020 alone. Assisting the workforce to work more easily from where they live, and employers in managing the process, is fast becoming a major industry.

Every so often an event comes along that turns the world on its head. In these times of uncertainty, commercial property investment is the last thing most of us are thinking about. But maybe it shouldn’t be?

The COVID-19 pandemic, like 9/11, is one of those events that feel like they split time in two: the world before coronavirus and the world after coronavirus.

By all accounts, there are some difficult months ahead. Things are probably going to get worse before they get better. But the South African government’s response has attracted international approval, and chances are brighter times aren’t too far off. If the past is a window to the future, there’s one thing we can all be certain of: South Africans will defy the odds and get people back together again, no matter how big the challenges seem. The opportunity for companies to contribute to that effort is emerging as we speak.

Vasbyt in the age of Coronavirus

The question we all need to be asking is ‘what does the future look like, and how do I make the most of right now?’ Here’s four trends that are going to shape the post-lockdown economy, and how North Point Ballito might be the ideal position for your business idea:

Community Focused Logistics

The supply chain will need to shift quickly to become more streamlined and more automated. With more shopping happening online and over the phone, fulfilment centres close to consumers will be an essential part of meeting future needs. North Point Ballito is right on Ballito’s doorstep – an ideal location to serve one of Africa’s fastest growing and most affluent communities.

Storage

Disruption leads to human movement. Downsizing, emigrating, holding possessions in place for some time – this will undoubtedly be part of the tomorrow economy. North Point Ballito is landscaped, greenscaped with indigenous plantation, branded and architecturally consistent. That makes for an ideal backdrop to a storage concept that people and businesses in Ballito are going to trust.

Cleaning

Epidemiologists generally agree that COVID-19 will be with us for some time. It will be up to governments and the market to keep outbreaks under control until a vaccine can be introduced, or until gradual immunity builds. That means cleaner workplaces, shopping venues, restaurants, factories, warehouses and schools. Got any bright ideas?

Technology

If social isolation has proven anything, it’s that social interaction is critical. Workers and students need collaboration. Kids need playtime. Technology companies are already stepping into the gap, whether by making spaces safe for people, breaking down the barriers around socialising remotely or providing the the information people need.

If you’re looking to maximise your return on investment, is it better to lease, buy or build, and is now the right time?

It’s a big question with far reaching implications for any company. The best advice is to do the research. Look at the market, consider the position your company is in, and make the decision that makes the most sense for the moment. For many types of companies, there are significant advantages to developing a build-to-suit business property on vacant land than buying a property ready-built.

Studies have shown that companies that operate from premises that they designed and built themselves are more efficient, more profitable and more likely to retain key staff than companies that do not. It comes down to that core driver of value: realizing vision. Although buying something ready-built has the benefit of immediacy, the enterprises that are willing to play the longer game reap the bigger rewards. Why is that? Here’s what the study found:

The benefits of building your own commercial premises

1. Designing the space yourself shapes how you operate 

Hands-on development of the layout and workflow of your own premises forces decision makers to consider new perspectives and new possibilities. When you retrofit a built space, there’s a greater tendency to go about business as usual, without the added innovation.

2. A premium location costs significantly more to purchase ready-built

When the premises are already built, you pay a considerable premium for an optimal address. Vacant sites in emerging areas offer considerably more room for appreciation, adding to company valuation and the bottom line. 

3. Too much space or too little

Buying ready-built means having to compromise in any number of ways. Does one take the bigger place out of town or the slightly more cramped option closer to the customer? With vacant sites, the size of the platform is far less restricting.

4. Appreciating asset

Owning your commercial building offers the benefit of capital appreciation, the rise in your property’s value over time. On average, building on vacant land is more likely to accrue value more quickly than a ready built property.

5. Taking a longer view 

Companies that build take a more measured view of the potential of the area, the asset growth and the over-arching implications of their investment than companies that do not. The insights uncovered through the build process contribute to other areas of the business.

A location second to none

North Point Ballito has 52 sites perfectly positioned for future-thinking companies in the Trade, Tech and Logistics sectors. North Point Ballito is situated only 15 minutes from King Shaka International Airport, 40 minutes from Africa’s busiest port and 90 minutes from Richards Bay.

Safe, secure, clean and green, North Point Ballito is where business is moving. If you have a business idea, why not give James a call on 082 921 0044 or email james@cenpropdev.co.za. Even if it’s not the idea for right now, our lines are always open. We love talking business.